Areas of Practice

Public Tenders, PPPs, BOTs

In the context of the Government's overall policy to introduce transparency and efficiency in the public procurement process, the Tenders Review Authority (TRA) was established with responsibility to examine appeals lodged with the Authority against actions and decisions of Contracting Authorities which contravene sections of the existing law and which take place prior to the signing of supply, works and services public contracts. The relevant law came into force on 1 April, 2004 and the Authority commenced operations on the same date.

It consists of the President and four other members which are appointed by the Council of Ministers on the recommendation of the Ministry of Finance.

Any interested party that feels that has been aggrieved or treated unfairly by a decision or act of a Contracting Authority, prior to the award of the tender, which contravenes any of the provisions of the existing law as regards the award of a tender and as a result of this act or decision the interested party has suffered or may suffer loss, may lodge an appeal with the TRA against such decision or act.

Public Procurement Best Practice Guide

 

1. PROJECT AND PROCUREMENT INITIATION

1.1 WHAT IS A PROJECT? WHAT IS PUBLIC PROCUREMENT? THEIR RELATIONSHIP

1.2 INSTITUTIONAL FRAMEWORK OF A PROJECT

1.3 PROJECT LIFE CYCLE

1.4 PROJECT INITIATION/ INCEPTION & PRIORITISING STAGE

1.4.1 Needs identification / assessment

1.4.2 Setting Priorities

1.4.3 Appointment of the project design team

1.5 PROJECT INITIATION / DESIGN STAGE

1.5.1 Development of a Business Case

1.5.1.1 Alternative ways of funding - Public vs. Private Project Funding

1.5.1.2 Cost / Benefit Analysis

1.5.1.3 Feasibility Study

1.5.2 Appointment of the Executive and Project Manager

1.5.3 Establishment of Project Fiche

1.5.3.1 Determination of Project Approach

1.5.3.2 Definition of Procurement Needs

1.5.3.3 Estimation of Project Budget - Determination of Funding Sources

1.5.3.4 Design of Project Organisation

1.5.3.5 Risk Identification & Assessment

1.6 PROJECT INITIATION/ PROJECT APPROVAL & APPOINTMENT OF PROJECT MANAGEMENT TEAM STAGE

1.6.1 Project Approval

1.6.2 Appointment of the remaining members of Project Management Team

1.7 REVIEWING THE PROJECT INITIATION PHASE

1.8 PROCUREMENT INITIATION

1.8.1 Defining roles and responsibilities in the procurement process

1.8.2 Procuring with own resources or outsourcing?

1.8.3 Procurement costs

CHAPTER 1 ANNEXES

2. PROCUREMENT STRATEGY

2.1 AN OVERVIEW

2.1.1 How can Public Procurement be defined?

2.1.2 What is the Pre Tendering Procurement Strategy?

2.1.3 What is involved in the Pre Tender Phase?

2.2 PROCUREMENT BASICS

2.2.1 What is the mission of Public Procurement?

2.2.2 What are the objectives of Public Procurement?

2.2.3 What is meant by Value for Money?

2.2.4 What is Best Value for Money?

2.2.5 How is Value for Money Achieved?

2.3 PROCUREMENT POLICY

2.3.1 How is a Positive Procurement Culture created?

2.3.2 When is the Procurement Process Outsourced?

2.3.3 Why Collaborate and Aggregate with other contracting authorities?

2.3.4 What are the principles of Procurement Activity?

2.3.5 How can Environmental & Sustainability Issues be promoted?

2.4 MARKET ASSESSMENT

2.4.1 What is the Role of Competition in Public Procurement?

2.4.2 How can Contracting Authorities Engage the Market?

2.4.3 When is Market Sounding Undertaken?

2.4.4 What is Market Creation?

2.4.5 When is there a need to Source Suppliers?

2.4.6 How can suppliers be retained through the Procurement Process?

2.4.7 What about monopolies and cartels?

2.5 THE PROCUREMENT PROCESS

2.5.1 Appointment of the Procurement Team

2.5.2 What are the possible Procurement Procedures?

2.5.3 What are the current EU Thresholds?

2.5.4 What are the procedures for contracts above EU Thresholds?

2.5.5 What are the procedures for contracts below EU Thresholds?

2.5.6 What needs to be considered when advertising a tender?

2.5.7 What is an acceptable procurement timetable?

2.6 FRAMEWORK AGREEMENTS AND CALL-OFF ARRANGEMENTS

2.6.1 What are the stages of framework agreements?

2.6.2 Why use framework agreement?

2.6.3 Examples of when Framework Agreements are useful

2.6.4 How is a Call-off arrangement used?

2.7 EVALUATION STRATEGY

2.7.1 Evaluation stages and their linkage to the tender procedure

2.7.2 Key evaluation principles

2.7.3 Determination of Technical Specifications

2.7.4 What types of specifications can be used?

2.7.5 What criteria should I use to select suitable economic operators?

2.7.6 What criteria should I use to award the contract?

2.7.7 What about the Evaluation Panel?

2.7.8 Summary of the decisions to be taken at the level of formulation of the evaluation strategy

2.8 CONTRACT CONSIDERATIONS

2.8.1 What is the Contract trying to do?

2.8.2 What type of contract should be issued?

2.8.3 What will be the contract monitoring process?

2.8.4 How long should a contract run for?

2.8.5 What type of payment mechanism should be put in place?

2.8.6 Negotiating on variations to the Contract

2.8.7 What types of commercial arrangements are available?

2.9 PARTICULARITIES IN THE PROCUREMENT OF SUPPLIES, SERVICES & WORKS

2.9.1 What are the specific features of the procurement of supplies?

2.9.2 What are the specific features of the procurement of services?

2.9.3 What are the specific features of the procurement of works?

2.9.4 How does the Legislation apply to mixed contracts?

2.10 EXEMPTIONS TO THE RULES - SPECIAL CASES

2.10.1 How are the Exemptions defined?

2.10.2 What strategies could be applied in the exemptions?

2.10.3 How can competition be maintained in the Exemptions?

2.10.4 Acquisition of Physical Infrastructure: Rent/Lease or Buy?

CHAPTER 2 ANNEXES

3. PREPARATION AND ANNOUNCEMENT OF TENDER PROCEDURE

3.1 INTRODUCTION - LINKAGE TO THE OTHER CHAPTERS OF THE GUIDE

3.2 PREPARATION OF TENDER DOCUMENTS

3.2.1 Individual parts of the tender documents and their function

3.2.1.1 Award of supply contracts and service contracts using the open procedure

3.2.1.2 Award of public supply contracts and public service contracts using the restricted procedure

3.2.1.3 Award of public supply contracts and public service contracts using the simplified procedure

3.2.1.4 Public works contracts

3.2.2 Determining the Contract Scope

3.2.2.1 Preparing the Terms of Reference

3.2.2.2 Preparing the Technical Specifications

3.2.3 Determining the evaluation criteria

3.2.3.1 Key principles

3.2.3.2 Determining the qualitative selection criteria

3.2.3.3 Determining the contract award criteria

3.2.4 Model draft tender documents

3.2.5 The case of the consultation stage (technical dialogue)

3.3 ADVERTISING

3.3.1 Publication of prior information notice

3.3.2 Publication of periodic indicative notice (Law 11(Ι)/2006)

3.3.3 Creation of "buyer profile"

3.3.4 Publication of notice of the existence of a qualification system (Law 11(Ι)/2006)

3.3.5 Publication of contract notice

3.4 PROVISION OF THE TENDER DOCUMENTS

3.4.1 Dispatch and delivery of the tender documents

3.4.2 Charge for obtaining the tender documents

3.5 PROVISION OF CLARIFICATIONS AND ADDITIONAL INFORMATION ON THE TENDER DOCUMENTS

CHAPTER 3 ANNEXES

4. EVALUATION AND CONTRACT AWARD

4.1 INTRODUCTION

4.1.1 Structure of Chapter 4

4.1.2 Bodies responsible for the evaluation of tenders and the award of the contract

4.2 OPENING OF TENDERS

4.2.1 Opening procedure

4.2.2 Entry of tender details in a special form

4.2.3 Announcement of ranking order

4.3 EVALUATION OF TENDERS

4.3.1 Purpose of the procedure for the evaluation of tenders

4.3.2 Basic evaluation principles

4.3.3 Time-related commitments of the Competent Body for the Evaluation of Tenders

4.3.4 Evaluation procedure

4.4 AWARD OF CONTRACT

4.4.1 Approval of the Final Evaluation Report and Award of the Contract

4.4.2 Cancellation of the tender procedure

4.5 PROVISION OF INFORMATION TO ECONOMIC OPERATORS

4.5.1 Initial notice to all interested parties

4.5.2 Notice to the Contractor

4.5.3 Notice to unsuccessful tenderers

4.5.4 Handling of Hierarchical Recourses

4.6 CONCLUSION OF CONTRACT

CHAPTER 4 ANNEXES

5. NEGOTIATED PROCEDURES

5.1 WHAT IS THE NEGOTIATED PROCEDURE?

5.2 CASES JUSTIFYING USE OF THE NEGOTIATED PROCEDURE

5.2.1 Negotiated procedure with publication of a contract notice

5.2.2 Negotiated procedure without publication of a contract notice

5.3 HOW IS THE NEGOTIATED PROCEDURE CARRIED OUT?

5.3.1 Stages of the procedure

5.3.2 Tender documents

5.3.3 Negotiation techniques

5.4 APPLICATION OF THE NEGOTIATED PROCEDURE

5.4.1 Negotiated procedure with one (1) economic operator

5.4.2 Two cases of a negotiated procedure

5.4.3 Negotiated procedures with reduction of the number of economic operators

5.5 GENERAL REFERENCE TO THE NEGOTIATED PROCEDURE FOR PUBLIC CONTRACTS IN THE WATER, ENERGY, TRANSPORT AND POSTAL SERVICES SECTORS (DIRECTIVE 2004/17/EC & LAW 11(Ι)2006)

CHAPTER 5 ANNEXES

6. CONTRACT IMPLEMENTATION AND MANAGEMENT

6.1 INTRODUCTION

6.2 FROM THE AWARD TO THE IMPLEMENTATION OF THE CONTRACT

6.3 KEY ELEMENTS OF CONTRACT MANAGEMENT

6.3.1 What is Contract Management? Why is it important?

6.3.2 Main Contract Management activities

6.3.3 Key factors for an effective Contract Management

6.3.4 Roles involved in Contract Management

6.4 MANAGING THE RELATIONSHIP WITH THE CONTRACTOR

6.4.1 Creating a spirit of cooperation and trust between Contracting Authority and Contractor

6.4.2 Factors having a negative effect on the relationship between Contracting Authority and Contractor

6.4.3 Evaluation of the relationship with the Contractor

6.4.4 Ethical Behaviour and Professionalism

6.4.5 Communication

6.4.6 Negotiations

6.4.7 Handling problems

6.5 CONTRACT ADMINISTRATION

6.5.1 Change management

6.5.1.1 Necessity to implement changes or modifications to the contract

6.5.1.2 Procedures to implement changes or modifications to the contract

6.5.2 Keeping a record of contractual documents

6.5.3 Payment procedures

6.5.4 Claims management

6.5.5 Assets management

6.5.6 Management Reporting

6.5.7 Contract Termination

6.5.7.1 Cases of contract termination

6.5.7.2 Actions for terminating the contract

6.5.7.3 Actions following termination of the contract

6.6 MONITORING THE CONTRACTOR & ACCEPTANCE MANAGEMENT

6.6.1 Evaluation of the Contractor’s performance

6.6.2 Penalties for delay

6.6.2.1 Supply Contracts

6.6.2.2 Service Contracts

6.6.2.3 Work Contracts

6.6.3 Acceptance Management

6.6.3.1 Acceptance of Supplies

6.6.3.2 Acceptance/ Approval of Reports and Deliverables (general service contracts)

6.6.3.3 Acceptance of Information System

6.6.3.4 Acceptance of Works Project in whole or in part

6.6.4 Risk management

6.7 DISPUTE RESOLUTION

6.7.1 Dispute Resolution Methods

6.7.2 Description of Dispute Resolution Methods

6.7.2.1 Amicable Settlement

6.7.2.2 Alternative dispute resolution methods

6.7.2.3 What is currently applicable in the Republic of Cyprus

6.8 CONTRACT CLOSURE

6.8.1 Actions for the contract closure

6.8.2 Evaluation of the contract management procedures

6.8.3 Checks during the completion of co-funded Projects

6.9 PROCEDURES FOR THE TRANSITION INTO PRODUCTIVE OPERATION

CHAPTER 6 ANNEXES

7. PROJECT MANAGEMENT

7.1 INTRODUCTION

7.2 THE PROJECT MANAGEMENT CONTEXT

7.2.1 The Project Management Processes

7.2.2 Project Stakeholders

7.2.3 Organizational Structure

7.3 INITIATING PROCESSES

7.4 PLANNING PROCESSES

7.4.1 Development of Activities Schedule

7.4.1.1 Application of Work Breakdown Structure

7.4.1.2 Identification of the Activities

7.4.1.3 Determination of activities’ sequence and dependencies

7.4.1.4 Estimation of Activities/ tasks duration

7.4.1.5 Scheduling of Activities

7.4.2 Development of Resource Plan

7.4.2.1 Identification of types and quantities of resources

7.4.2.2 Development of Resource Schedule

7.4.2.3 Assignment of resources to project activities/ tasks

7.4.3 Development of Cost Plan

7.4.3.1 Identification and estimation of costs

7.4.3.2 Development of Cost Schedule

7.4.3.3 Estimation of cost per activity/ task

7.4.4 Development of Quality Plan

7.4.4.1 Definition of quality criteria and standards to achieve

7.4.4.2 Establishment of quality assurance and control processes and techniques

7.4.5 Development of Issue Management Plan

7.4.6 Development of Change Management Plan

7.4.7 Development of Risk Plan

7.4.7.1 Updating of Risk Log

7.4.7.2 Development of Risk Management Plan

7.4.8 Development of Acceptance Plan

7.4.8.1 Establishment of criteria & standards for the acceptance of the deliverables

7.4.8.2 Formalization & documentation of the deliverable acceptance process

7.4.9 Setting up Performance Indicators

7.4.9.1 Establishing the Performance Indicators

7.4.9.2 Establishing the process for monitoring the Performance Indicators

7.4.10 Development of Communication Plan

7.4.10.1 Identification of stakeholders

7.4.10.2 Determination of Stakeholders’ communication needs

7.4.10.3 Define communication strategy

7.4.10.4 Completion of Communication Plan/Matrix

7.4.11 Reviewing the Project Planning Phase

7.5 EXECUTING & CONTROLLING PROCESSES

7.5.1 Schedule Management

7.5.1.1 Record progress of activities and tasks

7.5.1.2 Update the Activities Schedule

7.5.1.3 Identify and resolve schedule problems

7.5.2 Resource Management

7.5.2.1 Record resource progress

7.5.2.2 Update the Resource Schedule

7.5.2.3 Identify and resolve resource allocation problems

7.5.3 Cost Management

7.5.3.1 Record actual costs (or expenses)

7.5.3.2 Update the cost schedule

7.5.3.3 Identify and resolve cost problems

7.5.4 Quality Management

7.5.4.1 Monitoring of the quality assurance activities implemented by the Contractor

7.5.4.2 Organizing and implementing Deliverable Quality Review

7.5.5 Issue Management

7.5.6 Change Management

7.5.7 Risk Management

7.5.7.1 Risk Monitoring

7.5.7.2 Risk Control

7.5.8 Acceptance Management

7.5.9 Communication Management

7.5.9.1 Execution of Communication Plan/ Distribution of information

7.5.9.2 Reporting Project’s Performance

7.5.10 Reviewing the Project Execution & Control Phase

7.6 CLOSING PROCESSES

7.6.1 Performance of Administrative Closure

7.6.1.1 Identifying Follow-on Actions

7.6.1.2 Ensuring that all the deliverables have been accepted

7.6.1.3 Completing and archiving all project information

7.6.1.4 Disbanding the resources used in the project

7.6.1.5 Updating the CVs of the human resources involved in the project

7.6.2 Conduction of Project Evaluation Review

7.6.2.1 Conduct Project Evaluation

7.6.2.2 Prepare the Project Evaluation Report

7.6.3 Conduction of post-project review

7.6.4 Reviewing the Project Closure Phase

7.7 SYNOPSIS OF PROJECT MANAGEMENT ACTIVITIES

7.7.1 Project Management Activities in case that the Project is implemented with own resources (in-house production)

7.7.2 Project Management Activities in case that the Project is implemented by a Contractor

CHAPTER 7 ANNEXES